Tight supplies may keep edible oils firm till monsoon

Our Correspondent Mumbai | Updated on March 27, 2012 Published on March 27, 2012


Groundnut oil shot up by Rs 5 for 10 kg and cottonseed refined oil by Rs 2 for 10 kg tracking bullish reports, while rapeseed oil declined by Rs 2 for 10 kg on profit booking. Imported palmolein extended gains by Rs 5 for 10 kg, while soya oil lost Rs 5 for 10 kg. Sunflower oil ruled steady.Malaysian crude palm oil futures rose to the highest in nine months, supported by higher exports and physical buying interest. In line with foreign markets, local refiners raised prices of imported oils. An agitation at the Jawaharlal Nehru Port Trust led to tight supplies. Experts at an international conference on oils and oilseeds in Beijing on Tuesday expected edible oils to remain bullish, further strengthening local markets as local supplies won't ease until monsoon. Leading analyst Mr Dorab Mistry said palm oil may climb to a four-year high by the end of June to 4,000 ringgit a tonne as vegetable oil supplies are likely to remain tight due to tepid crude palm oil production growth and lower soyabean crop.

About 750-800 tonnes of palmolein were traded for ready and futures delivery. Resellers sold 150-200 tonnes of it at Rs 615- 617, while refiners sold 550-600 tonnes at Rs 612-614 and at Rs 620-621. Liberty quoted it at Rs 620-621, soya refined oil at Rs 709 and sunflower refined oil at Rs 715. Ruchi offered palmolein at Rs 616-618, soya refined oil at Rs 705 and sunflower refined oil at Rs 705.

In Rajkot, shortage of nuts pushed up groundnut oil by Rs 15 to Rs 1,895 for a telia tin and by Rs 10 to Rs 1,240 for loose (10 kg).

Malaysian crude palm oil's April contacts settled at 3,512 ringgit (3,482 ringgit), May at 3,485 ringgit (3,455 ringgit) and June at 3,481 ringgit (3,459 ringgit) a tonne. On the National Board of Trade in Indore, soya refined oil for April delivery closed at Rs 747.50 (Rs 751.60) while for May was Rs 749 (Rs 748).

Bombay Commodity Exchange spot rates (Rs/10 kg): groundnut oil 1,225 (1,210), soya refined oil 700 (705), sunflower exp. ref. 645 (645), sunflower ref. 710 (710), rapeseed ref. oil 843 (845), rapeseed expeller ref. 813 (815) cotton ref. oil 684 (682) and palmolein 615 (610).

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Published on March 27, 2012
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